Global Biofuels Market By Type (Biodiesel, Ethanol, Bioethanol, and Others), By Form (Solid, Liquid, and Gaseous), By Feedstock Type (Palm Oil, Jatropha, Sugar Crop, Coarse Grain, and Others), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview:

In 2022, the Global Biofuels Market revenue was USD 120.4 billion, this market is estimated to register at a CAGR of 8.9% during the forecast period of 2023 to 2032. It is expected to reach USD 276 billion in the forecast period.

Biofuels are derivatives of organic matter such as plants, algae, and animal waste. They play an essential title role in decreasing carbon production. They are alternative renewable fuels to conservative fuels such as gasoline, diesel, and kerosene and can be used in cars, trucks, ships, and planes.

Currently, there are two popular types of liquid biofuels, i.e., ethanol and biodiesel. Algae biofuel is a little rare and sometimes used as a substitute for frequently known biofuel bases such as corn and sugar cane. Advanced biofuels are nothing but second-generation biofuels.

Drivers:

Regulations Boosting Demands for Eco-Friendly Energy Resources

Biofuels can help to reduce greenhouse gas emissions and CO₂ releases. As such, liquid biofuels can help expand native air excellence, lessen bio-waste, and defend ecosystems. Governing guidelines such as the Renewable Fuel Standard boost the use of biofuels and drive the biofuels market in the estimated period.

Biofuels are considered one of the most effective cleaner fuel options over other conventional fossil fuels. Furthermore, increasing research for the commercialization of second and third-generation biofuels will be expected to boost the market growth in the forecast period.

Increasing Demand for Biofuel Sources Across the World

The biofuels like ethanol and biodiesel are referred to as first-generation biofuels and are becoming more popular across the world due to their important role in reducing greenhouse gases. Privately owned cars are mainly classified as light vehicles and run on gasoline as fuel. As a result, the market for biofuels is expected to grow in the forecast period.

North America, India, Brazil, Europe, and others have set major blending regulations to drive global biofuel demand. For example, the Indian government and petroleum marketing companies aggressively promoted the blending of 10% of ethanol in gasoline to gradually increase the proportion of the blend to 20% by 2032. Advancements in biofuel technologies and the significant benefits of biofuels are key factors for market growth.

Restraints

Fluctuations in the Price of Raw Materials

Volatile commodity prices have a direct negative impact on overall market growth. Rising biofuel prices are reducing demand in critical sectors. As a result, these fluctuations pose significant challenges to the growth rate of the biofuel market. The use of alternative sources is also restraining global biofuel market growth.

COVID-19 Impact Analysis

COVID-19 Negatively Impacted on Manufacturing and Supply Chain

The COVID-19 pandemic hit the production of the biofuel market and hurt the market as the demand for fuel decreased as transportation stopped. It has also impacted the demand for biofuels used in blends with fossil fuels. Lockdown restrictions adversely impacted the market as manufacturing activities, and supply chains across the chemical industry have been disrupted.

The market faced problems such as supply chain problems, a declining labor force, price volatility, and availability of raw materials, which hindered the overall market. However, with the gradual lifting of restrictions and the resumption of business activities, the industry is expected to grow steadily. It is also estimated that the market will revive as individual regulators ease these mandatory locks.

Type Analysis

Ethanol Segment Dominating Because of Global Necessity

The global biofuel market is divided into biodiesel, ethanol, bioethanol, propanol, butanol, and biogas. Ethanol is the dominating segment of this market and is also known as alcohol. It is made from cellulosic feedstock such as corn, crop residues, and wood.

It is one of the most crucial organic chemicals in industrial and consumer products. Bioethanol is the most exciting biofuel due to its positive environmental impact. It is mainly made from sugar and starch-containing raw material. The most extensive application of bioethanol is in the automotive and transport industries as fuel additives.

Biodiesel is a vegetable oil-based fuel (soybean or canola oil) that works in today’s diesel engines without hardware modifications. Biodiesel and biodiesel blends can be used in all compression ignition (CI) engines designed to run on diesel fuel. They are cheaper than petroleum, sustainable, and non-toxic, and they do not produce acid rain as they do not contain sulfur. They also do not contribute to global warming as much as fossil fuels. Studies have shown that they reduce engine wear by up to 30%, primarily because they provide better lubrication.

As little as 2% biodiesel in regular diesel can help achieve this improvement. They provide 220% more energy than required for production, transportation, and distribution, as the parent crop harvests solar energy and converts it into biodiesel feedstock.

Biodiesel and biogas are the primary sources of renewable energy worldwide. Propanol gained much attention due to its low production cost, and butanol is non-dissolvable in water and has high energy content and a low vaporization rate.

Form Analysis

The Solid Biofuels Segment is Dominant

The forms of biofuel are solids, liquids, and gaseous. Solid biofuels are derived from natural materials, such as plant biomass, animal waste, and municipal waste, which may be used for heating, cooking, or power generation. Solid biofuels in the form of wood have been used as a hearth for cooking, heating, and different applications.

In recent years, vital biofuels have been acquired from several sources, such as wooded area products, animals, agricultural residues, and devoted power crops. Liquid biofuel substitutes all internal combustion engines that work on diesel, gasoline, and kerosene.

Feedstock Type Analysis

The Sugar Crops Segment is Dominant

Depending upon feedstock type, biofuels are classified as palm oil, jatropha, sugar crops, coarse grain, and others. The sugar crop segment is expected to show significant growth in the market during the forecast period. Common sugar crops such as sugarcane, sugar beat, and sweet sorghum are used as feedstock for fermentation in which feedstock containing starch is converted into sugar, and also biofuel like ethanol is produced.

Most productive crops like oil palm offer great potential as a bioenergy feedstock. Palm oil is gaining worldwide acceptance as a source of biofuels. Jatropha is a low-cost and effective biodiesel feedstock with good fuel properties other than other feedstocks. Jatropha oil is used directly after extraction in diesel generators and engines. Coarse grains like Grain sorghum, ragi, and jowar are used in biofuel production as feedstock.

Key Market Segments:

Based on Type

• Biodiesel
• Ethanol
• Bioethanol
• Propanol
• Butanol
• Methanol
• Biogas

Based on Form

• Solid
• Liquid
• Gaseous

Based on Feedstock Type

• Palm Oil
• Jatropha
• Sugar Crop
• Coarse Grain
• Others

Opportunity

Increasing Demand for Biofuels due to Government-Related Regulations

Favorable government initiatives related to environmental regulations will increase the demand for BioSource energy resources and create revenue opportunities for market participants during 2023-2032. The European Commission and other federal agencies are creating new laws and regulations, such as the Eco Product Certification Scheme (ECS).

These regulations ensure a green and sustainable environment with low or no harmful emissions. These regulations incentivize coating companies to invest in bio-based fuel sources to produce more environmentally friendly fuels. The US and Western European government regulations, especially those related to air pollution, continue to support the latest low-emission coating technologies.

One of the world’s most important energy sources is crude oil, and over 70% of all petroleum fuels are used in the transportation industry. The surge in oil consumption is projected to deplete the world’s oil supply by 2023-2032. With greenhouse gas (GHG) emissions, including CO₂ and other harmful gases such as methane, carbon monoxide, and chlorofluorocarbons, their overuse raises health and global warming concerns.

In 2022, Greenhouse gas emissions exceeded 3 billion tons. Therefore, there is a need for readily available, renewable, and complementary energy options. These major factors produce lucrative growth opportunities in the transportation sector.

Trend

Increasing Applications of Biofuels in Automotive Industries

The biofuel market is seeing technological advancements as a major trend. Because they are compatible with existing fuel infrastructures and have high energy densities in the automotive industry, advanced biofuels are gaining popularity.

Advanced biofuel technology can be considered a renewable energy source. These resources can be used effectively to minimize environmental impact & secondary waste production and support current and future economic & social needs. Recent developments in bio-hydrocarbons have been made from lignocellulose biomass, such as grass and wood.

Regional Analysis

North America region is Dominant in Global Biofuel Market Share

North America is estimated to be the most lucrative regional market in the global biofuels market, with the largest market share of 41.8%. The North American region hosts one of the largest revenue shares in air transportation markets, with an established cross-country transportation infrastructure that runs primarily on fossil fuels.

The North American region is at the forefront of reducing emissions to limit the greenhouse effect; however, Europe’s biofuels market is expected to have a revenue share of 24.3% in 2032. In North America, the advancements in R&D facilities and the technological adoption rate is greater. As such, the market for biofuels is anticipated to grow.

Furthermore, due to the growing automotive industries, the biofuels industry is also boosting in several emerging economies such as Brazil, India, South Africa, and China. The rapidly rising per capita incomes and spiking awareness of greenhouse gases drive the need for biofuel industries in these nations.

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Market Share & Key Players Analysis:

Emerging major players are focused on various strategic policies to develop their respective businesses in foreign markets.

Several bio-based surface disinfectant market companies are concentrating on expanding their existing operations and R&D facilities. Furthermore, firms in the bio-based disinfectants market are developing new products and portfolio expansion strategies through investments, mergers, and acquisitions.

In addition, several key players are now focusing on marketing strategies, such as spreading awareness about natural ingredients and boosting the target products’ growth and company share.

Listed below are some essential key factors in the biofuel industry players.

Market Key Players:

• Biofuels Digest.
• Neste Nederland BV.
• Infinita Biotech Private Limited.
• Gruppo Marseglia
• Glencore
• Louis Dreyfus Company
• Chevron
• RB FUELS
• Ag Processing Inc.
• Elevance Health.
• Marathon Petroleum Corporation
• Evergreen Biofuels Holding Sdn Bhd
• Minnesota Soybean Processors
• Crop Energies AG
• ENF Ltd.
• Abengoa Bioenergy S.A.
• Renewable Energy Group, Inc.
• Archer Daniels Midland Company
• Valero Energy Corporation
• Advanced Biofuel Solutions Ltd.
• Bunge Limited
• China Clean Energy Inc.
• Other key players

Recent Developments

• Amber Resources LLC was acquired by Renewable Energy Group, a United States biodiesel production firm, in January 2022.
• In January 2022, POET LLC., which is a United States-based biofuels company, did a complete development on an addition to POET Bioprocessing, which will allow it to capture renewable CO₂, a co-product of the ethanol production process.

Report Scope